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Task: What is a time value of money (TVM)?


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Time value of money (TVM) is the concept that money in the present is worth more than the same amount in the future due to its potential earning capacity. This means that a dollar today is worth more than a dollar in the future because of its ability to earn interest over time. The concept of TVM is an important principle in finance, as it is used to calculate the present value and future value of investments and loans.